This chapter summarizes the fundamental questions underlying the economics of privacy. It highlights the tension between the multifaceted concept of privacy as commonly used in policy debates and its conceptualization as part of a utility function. The chapter then sets out new challenges for...

One of the new realities of advertising is that personal information can be used to ensure that advertising is only shown and designed for a select group of consumers who stand to gain most from this information. However, to gather the data used for targeting requires some degree of privacy...